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Chemical Consulting: Commercial and Feasibility Studies

Deep insight and robust analysis, provided by highly credible and experienced consultants, is crucial to effectively evaluate and pursue opportunities and new business ventures.

Built on IHS reputation for integrity and our comprehensive industry intellectual capital and proprietary information, our consulting team has developed extensive expertise performing commercial analyses and project feasibility studies to companies operating at any point across the chemical value chains.

Combining the unmatched breadth and depth of the information and insight provided in our multi-subscriber databases and reports, with our consultant’s first-hand industry experience, we uniquely understand the complex and dynamic chemical industry. With experience ranging from advising company executives, business development, analysts and project managers, IHS is equipped to provide guidance and critical thinking throughout project planning, development and execution phases.

We can help answer:

Where should my company’s next capital investment be?

How can I access competitive feedstocks?

Which are the growth markets and how can I position my business to take advantage of growth opportunities?

What is the commercial and financial feasibility of this project? Does it look attractive and how does it rate versus competitors?

What is the market outlook and how is the market impacted by global mega-trends, regional and local factors?

How is the market impacted by competing materials, substitution and regulations?

Find the answers you need for your chemical of interest

For IHS Markit Customers

Qualifications and Experience

This list is not exhaustive and is intended to serve as an introduction to IHS Chemical Consulting’s breadth of services offered:

Project Name

Project Description

Petrochemicals Master Plan Study

IHS completed a comprehensive Master Plan study for the development of the petrochemicals sector for a client in the UAE to support the Emirate’s Vision 2030. IHS carried out comprehensive product screening and selection process and provided market, technology and cost competitiveness analyses, project economics, social and economic impact assessment of the Master Plan. The master plan was translated into a business case to show the impact on the economy of the Emirate, its competitive position and overall economic attractiveness. The Master Plan shows the potential for new industry clusters to emerge in downstream industries reliant on petrochemicals as primary inputs. It also includes a socio-economic impact analysis which catalogues the social and economic impacts the region can expect.

Feedstocks Sourcing

A major consumer of C5 and C9 feedstocks in Europe was facing a feed-sourcing issue as cracker in Europe move to lighter feedstocks. IHS utilised the in-depth knowledge of its olefins’ experts who have day-to-day contact with major players in the olefins industry to model every cracker in EMEA, determining the volumes of co-products produced by each cracker over the next ten years. Also provided ideas for potential new sources and valuation ranges.

Market Study on Lactic Acid

A major global petrochemical company with interests in the production and marketing of lactic acid wished to develop a deeper understanding of the lactic acid markets, outside of its use in PLA. IHS carried out a major primary research exercise to understand the applications for lactic acid outside of its use as a polymer for making “green” bottles and the drivers for growth in the other applications. IHS was able to assess the major competing acids and how the price of lactic acid impacts its penetration of these markets.

CIS Petrochemical Producer, Feasibility Study

IHS undertook a major study for a CIS client who had a large amount of gas condensate feedstock which they wished to monetize. The study included a review of the best location to convert this feedstock to petrochemicals along with a range of potential configurations at each location, informed by an analysis and forecasts of markets for polymers, aromatics and synthetic rubbers, technology and competitiveness assessment and financial evaluation (cash flow modelling).

Case Studies

Challenge: A company that had successfully launched an n-Paraffin and Linear Alkyl Benzene (LAB) plant reached 100 percent of utilization levels. The client wanted to assess its position relative to major competitors in its target markets and identify new market opportunities.

Solution: IHS Chemical performed a cost-competitive benchmarking evaluation as well as a market update.

Results:The client received a study that evaluated cash costs and full costs based on each LAB producer’s regional economics, integrated or non-integrated position and scale, with a focus on the impact of feedstock costs. The study included analysis of the impact of GTL paraffins on the LAB plant’s cost structure.

Challenge: A client wanted an analysis of the long-term evolution of the North American ethylene industry.

Solution: IHS Chemical performed an ethylene cost curve and scenario analysis to assess the competitive position of individual producer plants and to indicate advantageous and disadvantageous production costs under various economic and energy scenarios.

Results:The study compared the apparent portfolio strategies of the major producers of ethylene glycol (MEG), ethylene oxide (EO) and EO derivatives, including MEG, ethanolamines, glycol ethers and surfactants. The study summarized the apparent producer strategies, as well as offered a qualitative assessment of the potential costs and benefits of selecting one strategy over another.

Results:IHS Chemical provided ongoing updates and support during discussions with lenders, as well as conclusions and recommendations as to the marketability and pricing of the products, the likely ability of the proposed complex and the economic feasibility of the overall project.

Challenge:A major North American polypropylene buyer engaged IHS Chemical to assess its current procurement methodology and develop more desirable practices and supplier relationships.

Solution:We conducted a polypropylene study for the purpose of preparing senior executives for high-level discussions with their supplier base. The study incorporated the following scope of work items: assessment of resin procurement processes compared and contrasted to other resin procurement organizations, general current polypropylene resin market conditions, benchmarking and best practices of commercial terms, pricing, and rebate structure that other resin buyers have with suppliers in their market space and current volume demand and its percentage of their suppliers’ capacity. We also conducted interviews with PP suppliers and users in three major regions.

Results: IHS Chemical provided a high-level procurement plan that identified areas of improvement and normalization in order to assist the client in presenting a more competitive and global front for its suppliers and other market participants.

Challenge:IHS Chemical aided one of the world's leading developers and manufacturers of chemical intermediates in locating a long-term, strategically advantaged plant site to expand its phenolic resin business in China.

Solution:Our analysis of optimal candidate sites included identifying established chemical parks with substantial standing investment in the targeted regions with 50,000 square meters of available land and identifying merchant phenol, formaldehyde, methanol and isobutylene suppliers and proximity to target sites.

Results: We provided a full report with an executive summary containing our opinion on the suitability of potential candidate sites relative to the criteria outlined in the scope, as well as documentation pertaining to the site identification and data gathering.

Challenge: IHS Chemical aided a major consumer product client with a market overview for selected feedstocks and polymers as well as identification of major plastics resin purchasers in certain categories and geographies.

Solution:Our overview included global PET, PET feedstocks (PTA and MEG) and olefins (Ethylene and Propylene) supply and demand, both globally and by a specific geographic regional breakdown defined by the client.

Results: The client received a customized analysis that included identification of both existing capacity, future planned capacity, demand, net imports and exports and operating rates for the regions, as detailed by the client along with the identification of the top five global and North American buyers of plastics resins.

Customer Stories

Dedicated to promoting sustainable development of Canada’s largest hydrocarbon processing region, this leading association gained objective, third party expertise/credibility for investor research that identified Alberta's 4 most competitive chemical products -- and brought 11 companies to Alberta for tours and discussions .

One of the world's largest independent energy exploration/production companies responded to a request from the Government of Mozambique by sponsoring a third-party study of requirements for developing trillions of cubic feet of natural gas as well as the value of related mega-projects for the local economy and people. The study was completed in only 30 days.

Chemtura Uncovers Market Trends to Drive Innovation and Open Up New Business Opportunities

As a leader in the global specialty chemicals market, this US-based company has compressed business development research efforts from several months to a few weeks − supporting faster time to market -- as well as promoting a broader understanding of customer needs and uncovering fresh ideas from other fields.

This US subsidiary of the global industry leader – with headquarters in Japan and operations in 25 countries – compiled a list of more than 400 market opportunities before selecting 5 priorities and developing action plans to accelerate entry and increase traction in new markets. All five plans were approved by the parent company's CEO.